State legislature proposes tax for nonprofit real estate purchases

Under terms of the legislation, nonprofits are to be taxed for real property acquisitions

Non-Profits & Charities

By Allie Sanchez

A Massachusetts bill is proposing that nonprofits pay taxes on their real estate purchases to beef up the state’s coffers.

The author of the amendment, Lowell Representative David Nangle, noted in a report that the local government currently cannot collect taxes on such transactions.

Nangle said the setup is a “burden” to taxpayers since they have to pick up the slack for the revenues lost from such transactions.

Under the proposed amendment, non-profit organizations would have to pay taxes on a “sliding scale” over the course of four years after the property was purchased.

More specifically, they will have to pay the tax at a diminishing rate of 25% in the prescribed payment period.

Nangle described the proposed measure as “fair and equitable”. 
 

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